Islamic Banking in India: Scope and Challenges

India is a growing country which needs financial stability to facilitate each and every individual in this highly populated country. A bulk of Indian population until today does not have bank accounts. Some national and governmental reports show that minorities, especially Muslim minorities, until now were not a part of the financial inclusion. It seems that, interest-free banks might bridge this gap, if it is allowed in India. The aim to write this paper to examine the viability and scope of Islamic banking in India. This study pointed out that the Islamic banking is not only in favour of a specific community but it's for all. Moreover, if this system is being allowed, it would accelerate Indian economy definitely. This paper also tries to find out the scope of Islamic banking in India along with shedding lights upon the various issues and challenges involved in getting full-fledged Islamic banking licence from the regulatory bodies.

This paper aims to bring into notice the evidences of the countries where Islamic banking approach adopted due to its innovative approach.

If Islamic banking system truly implemented, Indian market will be considered potential market for the years come. The leaving idle of petro Arab dollars will pursue this process very easily simultaneously indo Arab relation will strong.